October 21st, 2011

Creating a Personal Finance Statement

If you own a small business or are self-employed, this guide will help you track income and expenses on a regular basis.

Entrepreneurs tend to create personal financial statements for one of two reasons. Either they love numbers and want to track expenses and income in order to know what makes their business tick, or they are meeting with a lender or an investor who will want to review financial statements.

Business owners who are intimidated by financial analysis tend to fall into the second group—they act only when pushed. But that can be a mistake. Knowing one’s way around a financial statement is an important step in maturing as a business owner. A personal financial statement is also a helpful tool in helping you to understand the separation (and blurring of the line) between an individual’s assets and liabilities, and those associated with his or her business venture.

To be sure, managing financial statements is not exactly the most creative or glamorous aspects of running a business. “If ever I ask people why they want to start a business, it’s a sense of self fulfillment or I want someone to be able to experience this certain product,” says Chuck Matthews, executive director of the center for entrepreneurship, education and research at the University of Cincinnati. “But creating and maintaining a budget is one of the most important things to do.”

So, whether you are ready or not, you should sit down with your financial account information and create a series of Excel spreadsheets—starting with a balance sheet and income statement. These documents will make up your personal financial statement.

Creating a Personal Finance Statement: The Balance Sheet

A balance sheet’s purpose is to show the assets you own and the liabilities you owe. When calculated, the positive assets and negative liabilities will show your net worth.

Among the assets to include on your balance sheet: bank account balances, the value of stocks owned, and the value of your property. Simply log on to your bank’s account and any brokerage accounts to obtain current numbers. In order to obtain accurate property values, you’ll want to call your real-estate agent who does appraisal and get an updated value assigned to any property you own. While you’ll want to create a new personal financial statement every month, this step isn’t necessary every time – just try to keep your property value updated each quarter.

As for liabilities, add any sort of lease, mortgage, credit-card debt, or loans you are currently repaying. Simply log on to your lender’s site (which might be the same as your personal and business accounts from the assets column) and get the most recent numbers. Some easily overlooked liabilities are tax payments and accounts payable.

It helps to consider this balance sheet just a snapshot of what you have and what you owe. You are not creating a ledger for the week, month, or year. You are simply trying to take a picture of your net worth at one moment in time.

For a complete list of all the items a balance sheet can include, check out’s detailed guide.


About the Author

DeAndra Harrison
DeAndra` A. Harrison, Editor for Socialtik Mag is a Columbus, OH native, trying to survive in the "concrete jungle of NYC", who is passionate about her entrepreneurial ambitions. She is striving to succeed and she will let everyone know. She believes that helping herself is not enough, so she actively imparts the knowledge she acquires to those around her.



7 Rules to a Perfect Brainstorming Session

We all know that as budding entrepreneurs we have to create new ideas 24/7. We always have to have our thinking caps on and forge new ways to market our products or make people want to use our services. When we are sleeping, ou...
by DeAndra Harrison


How Do Small Collection Accounts Impact Your Credit Score?

Fortunately, there is one recent change to the world of credit scoring concerning small debts, which are sometimes called “nuisance” collection accounts. Fair Isaac, creator of the FICO score, has rolled out to all three cr...
by Socialtik Mag


Steve Jobs’s 7 Rules to Success

Steve Jobs’ impact on your life cannot be overestimated. His innovations have likely touched nearly every aspect — computers, movies, music and mobile. For entrepreneurs, Jobs’ greatest legacy is the set of pr...
by DeAndra Harrison



Is Marketing a Money Drain or Money Fountain?

Marketing is an essential part of running a business, often overlooked or poorly implemented due to busy-ness of the Owner, this gets looked upon as money draining out of the business. On the other hand, if done right and imple...
by DeAndra Harrison


Perfect Pitch for an Investor’s Home Run

Angel investors can provide you not only with the money to take your small business to the next level, but also real-world experience, advice and a cache of industry connections. But are you giving investors the information t...
by DeAndra Harrison




  1. Thank u so much admin and sorry permission share in here

  2. Incredible! It sounds great. A debt of gratitude is in order for sharing.. links building manually

  3. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business.

  4. Isn�t fda fda for safety of piu potente cialis dosage splitting pills o viagra.

  5. Watch Smurfs The Lost Village Online

  6. In modern highly ambitious business field, subscribing so that you can popular business enterprise and funding

  7. Nice blog right here! Also your website quite a bit up very fast!

  8. Having computer problem with virus, Contact for Avast antivirus technical support and make your computer free of virus. For any query call 18777228183 Toll free.

  9. I would like to say thanks for share that. It was more impressive and useful for me.

  10. thank you’ve made an excellent website and this interesting. I am so inspired by your website. Its contents are highly qualified . continued success in the waiting yes the newest update.

  11. Thanks for giving here guidance which will help us to track income and expenses on a regular basis as a small business or are self-employed. It is really nice Entrepreneurs tend to create personal financial statements for one of two reasons.

  12. I love reading great articcles like that one!

  13. Nice website, the site is very interesting, a lot of helpful articles and the latest news that arouse interest. nice!!

  14. You have shared such a valuable point with us. Best of luck for your future post.

  15. I glad to be here see this great stuff, I just amazed to see your ideas thanks for share that.

  16. Reading this topic is really fun 🙂

  17. that topic is really interesting for me

  18. It is the momentary pleasure that makes life special, makes life very desirable to you. For a moment’s pleasure, you can forget weeks of worries. Their lies the specialty of life. When feels just tied up with the tensions of life you must get a respite from it with some interesting ways. An interesting dating with a loving woman can bring out of the tensions of life. There lies the specialty of the Riyaroyal who are skilled enough to bring you out of sufferings of life and present you the joys of life. They are known for their amazing skills and thus have clients from all over the world. Not only the travelers but the locals are also absolutely fond of these amazing ladies.
    Riyaroyal is avialble 24/7 for you.

  19. This is a great stuff

  20. We have a variety of girls who are totally devoted to thier works. There are fair skin tones acquiring hotties as well as dusky bombshells. They are naturally beautifull and we proud of that. We provide escorts in UAE. The men who are looking for friendship in life contact Naughty Princess . The Naughty Princess provide best escort service in UAE.

  21. A warm welcome from Dubai Darling provide you best encounters of whole world. We are based in Dubai and provide service across the whole UAE. Dubai Darling keep the customers happy and centre of business models. We provides Indian, Pakistan, Turkey, Abu Dhabi, Palm Jumweirah escorts to the customers.

  22. That is very interesting, i must try this one!


  23. Key neglecting all that you have an amazing website. We are enthused about absolutely more related subjects. we see you were given if all else fails staggeringly strong subjects, I will be always checking your site with respect to it.

  24. It is particularly useful information for me. Since I am new in blogging and I require extraordinary instructional exercise like your post.

  25. Nice to read something like thet here


  26. I am very happy to share this, Interesting Blog, Thank you so much for this Lovely Update.

  27. thanks for this awesome web page, i like it

  28. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work.

  29. Most of the posts are now not unique, but your article is really unique and very helpful. Thanks.

  30. You don’t have prescription for allemagne cialis but need to get one?


Leave a Reply

Your email address will not be published. Required fields are marked *

Twitter Users
Enter your personal information in the form or sign in with your Twitter account by clicking the button below.

thru 9/26 - Fall Sale. 30% Off select styles. Disc